1099R

[dcrtax]

I have a 1099-R for an IRA account that was converted to a Roth IRA.  It was a direct rollover.  On turbo tax, I have the same amount entered on line 1 and 2a  and the box check total distribution on line 2b.  I am use the code "N" for line 7 as indicated on the 1099-R.  The amount should be taxable, but turbo tax is not recognizing the amount as taxable.  thank you 

[dmertz]

Code N is for a recharacterization, not a Roth conversion.  A recharacterization is not taxable as income, but might have resulted in an excess Roth IRA contribution that is subject to a 10% excess contribution penalty depending on your MAGI and filing status.

A code-N Form 1099-R is required to have a zero in box 2a because the transaction is always nontaxable.  TurboTax knows that a code-N distribution is nontaxable and will properly ignore anything you put in box 2a.

[dcrtax]

Thank you.  Yes, it was conversion from Trad IRA to Roth IRA.  I didn't make-up the code.  That's is what is on the 1099-R.  Perhaps it is a mistake.  I will reach-out to broker/firm. 

[dmertz]

Sorry, I reread your question and revised my reply.  Your IRA custodian processed a recharacterization, not a Roth conversion.